Returning a Counterfeit Money Order

Question:

How long do I have to return a counterfeit money order before it is considered a late return?

Answer:

Assuming this is a counterfeit money order that purports to be drawn on your institution, you have until midnight of the banking day following the banking day of presentment to return it. A prompt inspection would have put your bank on notice that it was fraudulent. If you did not inspect it promptly then you assume the risk of loss.

First published on BankersOnline.com 1/17/11